WASHINGTON – The U.S. private equity industry has amassed $353 billion of dry powder as of December 2017, according to the American Investment Council’s (AIC) 2018 Q2 Private Equity Trends Report, released today. This figure marks a 44 percent increase from the $245 billion of US-based callable capital reserves in December 2016.

“Dry powder levels continue to hit historic levels and reflect the robust and fast-paced fundraising environment over the last few years,” said Bronwyn Bailey, AIC Vice President of Research and Investor Relations.

Despite record levels of dry powder, Q2-2018 saw total private equity investment drop to $41 billion, a 49 percent decline from this point last year. Prior to 2018, U.S. private equity investment had steadily increased since 2009. In addition, fundraising volumes fell to $19 billion, equity contributions remained level, and exit volumes decreased to $51 billion.

“Investment volume in private equity slowed this quarter, a reversal of the upward trend we saw in almost every successive year over the last decade,” said Bailey. “With record levels of dry powder, fund managers are well-positioned to invest more capital in growing businesses and industries across the country.”